Showing posts with label Indicator. Show all posts
Showing posts with label Indicator. Show all posts

Opening Range Breakout | TradingView

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In layman’s terms or in simple English, let me explain what opening range breakout means.
If you break the phrase - Opening Range Breakout into the following:

Opening: Obviously it means starting of something, in this context it means the market

Range: Range is defined as the variation between the upper limit and lower limit, in this context, the limits of a stock price

Breakout: Breakout means moving outside of the specified limits or the range in this context.

Any stock creates a range in the first 30 minutes of trading in a day. This is calling Opening Range. The highs and lows of this time frame are taken as support and resistance.Any stock should trade within a range, which is comparatively lesser than the average daily range of the stock. The upper and lower boundaries of the range can be identified by the high and low of the first 30 - 60 minutes.

You can buy when the stock moves above the opening range high and sell when the stock moves below the opening range low. The idea is to go long on a break above resistance, or short on a break below support.

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Turtle Trading | TradingVIew

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Turtle trading is a renowned trend-following strategy used by traders in order take advantage of sustained momentum. It looks for breakouts to both the upside and downside and is used in a host of financial markets.

Markets traded: the turtles traded futures contracts, looking for highly liquid markets that would allow them to trade without moving the market without a large order.

Entries: two different entry systems were used. The first used a simple 20-day breakout, defined as a 20-day high or low, or a 55-day breakout. Winning positions would be added to, up to a maximum of four entries.

Stop losses: the turtles were taught to use stop losses at all times, in order to ensure that losses did not become too large. Crucially, they determined their stop loss before they entered the position, defining their risk before the trade was placed.

Exits: The system one exit rule was a 10-day low for long positions, and a 20-day high for shorts, while system two utilized a 20-day high or low. They did not use stop exit orders, but watched the price in real time.

Try it out on different time frames, find the best on for your asset and enjoy trading!

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